Retrofitting and optimizing existing district energy systems

This Solution supports local governments in retrofitting existing district heating systems to make them more modern, energy efficient and cost-effective. It is applicable to old systems – from small to large - facing difficulties and which are owned, operated or regulated by the local government.

As other infrastructure, to be able to deliver expected performance levels district energy systems need adequate operation, maintenance and replacement at the end of useful life. For funding to be available for this, a sound business model must be put in place to ensure an adequate customer base and steady revenue streams.

The key roles local governments can play in the implementation of this Solution are:

promoting modern technologies/systems/practices such as combined heat and power generation (CHP), smart systems and improved automated control

facilitating the use of local renewable resources and waste heat

reviewing metering policies, tariff regulation and other policies and regulations to remove barriers and incentivize modern district energy

contributing to a sound business model

facilitating access to funding for needed retrofitting works.

It is also important to explore opportunities related with the cycles of renovation of existing buildings.

Motivation / Relevance

Old existing district energy systems may face inefficient heat production, transmission and distribution, costs that exceed revenue and declining sales. Examples of this are frequent in transition economies, where although district heating covers 60% of the heating and hot water needs, numerous difficulties exist, largely associated with the political and socio-economic past (IEA, 2004) [1].

The root causes of the sector’s dilemma in often related excess production capacity, uneven playing field and inadequate legal framework, poor customer focus and low efficiency in production, transmission, distribution and consumption of heat. Policy and market reform and private sector participation may help to tackle these challenges.

Acknowledgements

This Solution was jointly developed and peer-reviewed by ICLEI
and the Global District Energy in Cities Initiative (DES Initiative) ,
which is coordinated by the United Nations Environment.

ICLEI acknowledges and recognizes all individual organizations and
experts that kindly contributed their time and expertise to this Solution -
for details please see the "Developer" section above
and the "Supporters" webpage.

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Overview:

The project and this online platform have been developed with financial assistance from the European Union. The views expressed in this document can in no way be taken to reflect the official opinion of the European Union. The European Commission is not responsible for any use that may be made of the information contained therein.

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